GBP/USD struggled to stay above 1.3150 and declined recently. USD/CAD is under a lot of pressure below the 1.3120 and 1.3150 resistance levels.
Important Takeaways for GBP/USD and USD/CAD
- The British Pound declined recently and tested the 1.3040-1.3050 support area.
- There are two bearish trend lines formed with resistance at 1.3115 and 1.3155 on the hourly chart of GBP/USD.
- USD/CAD declined heavily after it broke the 1.3200 support area.
- There is a key bearish trend line in place with resistance at 1.3185 on the hourly chart.
GBP/USD Technical Analysis
The British Pound struggled a lot to stay above the 1.3180 and 1.3200 resistance levels against the US Dollar. The GBP/USD pair declined recently and broke the 1.3150 and 1.3120 support levels.
The decline was strong as there was a break below the 1.3100 support and the 50 hourly simple moving average. A low was formed at 1.3043 on FXOpen and later the pair started an upside correction.
It moved above the 1.3060 level and the 23.6% Fib retracement level of the last decline from the 1.3159 high to 1.3043 low. However, there are many hurdles formed on the upside near the 1.3100 and 1.3120 levels.
The pair recently failed to clear the 50% Fib retracement level of the last decline from the 1.3159 high to 1.3043 low. Moreover, there are two bearish trend lines formed with resistance at 1.3115 and 1.3155 on the hourly chart of GBP/USD.
Finally, the 50 hourly simple moving average is placed near the 1.3100 resistance level. Therefore, as long as the pair is below the 1.3100 and 1.3155 resistance levels, there is a risk of more losses in the near term.
On the downside, an initial support is near the 1.3050 level, below which there is a risk of a fresh drop below the 1.3040 and 1.3020 support levels.
USD/CAD Technical Analysis
The US Dollar remained in a strong downtrend from well above the 1.3350 resistance level against the Canadian Dollar. The USD/CAD pair broke the 1.3250 and 1.3180 support levels to enter a bearish zone.
Sellers remained in action and pushed the pair below the 1.3100 level and the 50 hourly simple moving average. The pair traded towards the 1.3050 support level and a low was formed at 1.3068 before an upside correction.
An initial resistance is at 1.3100, followed by the 23.6% Fib retracement level of the recent decline from the 1.3293 high to 1.3068 low. The 50 hourly simple moving average is also positioned near the 1.3120 to act as a solid hurdle.
The next resistance is the 50% Fib retracement level of the recent decline from the 1.3293 high to 1.3068 low at 1.3176. There is also a key bearish trend line in place with resistance at 1.3185 on the hourly chart of USD/CAD.
Therefore, there are many resistances on the upside, but the main resistance is near 1.3185-1.3200, above which the pair is likely to start a solid upward move.
On the other hand, once the current correction is complete, the USD/CAD pair is likely to resume its decline below 1.3080. A break below the 1.3050 support may clear the path for a test of 1.3000.